The CFTC and the SEC are back at the table, discussing crypto regulation after years and years of uncertainty. Caroline Pham, acting chair of the CFTC, confirmed at the Milken Institute’s Future of FinTech Symposium in Washington, D.C. on Wednesday, that both agencies have reopened conversations at the staff level.
“We have restarted conversations at the staff level between the CFTC and SEC. We would like to work together. We have worked together well in the past, and I look forward to getting back to regular order,” Caroline said.
SEC commissioner Hester Peirce, who was also there, agreed with Caroline. She said the SEC is working to define what falls under its jurisdiction and what does not. “It is important to know what is an SEC remit and what is not,” said Peirce.
Peirce also pointed out that crypto users and investors should have a say in the regulations affecting them. “The people affected by the rules should have a place in making them,” she said.
SEC moves on from crypto enforcement
The SEC is moving away from its previous approach of regulating crypto through lawsuits, according to Peirce. At the D.C. event, she acknowledged the agency is trying to return to actual policymaking instead of relying on enforcement actions.
“We are trying to move away from a regulation by enforcement approach and really bring policymaking back,” Peirce said.
Under former SEC Chair Gary Gensler, the agency was heavily criticized for pursuing crypto companies through enforcement instead of setting clear guidelines.
One of the most important decisions came on February 27, when the new SEC dismissed its lawsuit against Coinbase, one of the biggest crypto exchanges in the U.S. Peirce supported the decision, saying that the SEC’s policy divisions—not its enforcement team—should be taking the lead on crypto regulations.
“The decision by the previous commission to shift this function to the division of enforcement by engaging in a large-scale regulation-by-enforcement initiative harmed the American public, adversely affected the industry, and impeded the ability of the commission’s skilled and dedicated professional staff to use their expertise as it was intended to be used,” Peirce said in a statement on March 5.
That same day, the SEC’s division of corporation finance released a statement on meme coins, making it clear that they are not classified as securities. The document stated that meme coin holders and buyers are “not protected by the federal securities laws.” Peirce supported the statement and emphasized that the SEC should not overstep its jurisdiction. “I think it’s good to remind people that we have a bounded jurisdiction. And despite the past several years, we are trying to stay within those bounds now.”
Peirce also confirmed that the SEC is open to working with Congress to draft clearer crypto legislation. “Once they have a law in place, we stand ready to implement whatever they have,” she said.
SEC launches public crypto roundtables
The SEC is also taking its discussions on crypto regulation to the public. The agency has announced a new series of roundtables under the Crypto Task Force, starting with an event titled “Spring Sprint Toward Crypto Clarity” on March 21.
The first discussion, “How We Got Here and How We Get Out – Defining Security Status,” will take place at SEC headquarters in Washington, D.C., from 1 p.m. to 5 p.m that day.
The event will be open to the public, but the number of in-person participants will be limited. Attendees will need to pass security checks. The SEC will also stream the discussion live on SEC.gov, with a recording available later. Details about the speakers and the agenda will be posted on the Crypto Task Force webpage in the coming days.
Peirce, who is leading the Crypto Task Force, said, “I am looking forward to drawing on the expertise of the public in developing a workable regulatory framework for crypto. The roundtables are an important part of our engagement with the public.”
The Crypto Task Force, launched on January 21 by Acting SEC Chair Mark Uyeda, was created to set clear regulatory lines, create realistic registration paths for crypto businesses, improve disclosure frameworks, and use enforcement more effectively. The task force is also open to direct public input, allowing people to request meetings to discuss crypto-related concerns.
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